Snapdeal Being Prepped for Sale by SoftBank: Report

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By Reuters | Updated: 5 April 2017 11:58 IST
Highlights
  • Snapdeal is reported to be mulling sale
  • SoftBank is in process to strengthen its stakes in the company
  • Snapdeal was earlier said to be struggling to raise fresh capital

Snapdeal's three biggest investors - Japan's SoftBank, Kalaari Capital and Nexus Venture Partners have moved closer to resolving an impasse, potentially clearing the way for a sale of the e-tailer to one of its rivals, Flipkart or Paytm, according to a LiveMint report, citing unnamed sources.

The newspaper report said that at a board meeting of Jasper Infotech, the company behind Snapdeal, on Tuesday, SoftBank showed interest in buying a part of the stake owned by Kalaari and Nexus.

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Such a move would allow SoftBank, which owns more than a 30 percent stake in Snapdeal, to consolidate its ownership position and put it in the driver's seat to negotiate any deal.

Snapdeal Said to Be Reassuring Staff With Promises of Profit

The newspaper said Kalaari and Nexus are seeking a sum of $100 million (roughly Rs. 650 crores) each for their stakes. Snapdeal promoters Kunal Bahl and Rohit Bansal have also asked SoftBank for a $100 million payout to them and their management teams in order to clear the way for a sale.

A spokeswoman for Snapdeal said no decision has been taken by the board on any matter thus far.

Nexus declined to comment. And Kalaari and SoftBank did not respond to requests for comment.

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Separately the Economic Times citing a source reported that a sale of Snapdeal to Flipkart is more likely than a sale of the company to smaller e-commerce rival Paytm, as Flipkart's valuation of Snapdeal was much better.

A representative of Flipkart said that the company does not comment on market speculation.

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© Thomson Reuters 2017

 

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